Error message when you implement a nested transaction with the OLE DB Provider for SQL Server: "Could not start a transaction for OLE DB provider"

Microsoft OLE DB Provider for SQL Server does not support nested transactions, and the following error message is returned: Microsoft SQL Server also returns the following error message if the provider is a SQL Server-specific provider:

This error indicates that a data modification statement is being attempted against an OLE DB provider when the connection is in an explicit or implicit transaction, and the OLE DB Provider does not support nested transactions. SQL Server requires this support so that, on certain error conditions, it can terminate the effects of the data modification statement while continuing with the transaction.

To work around this problem, set XACT_ABORT to ON before the transaction. This causes SQL Server to terminate the surrounding transaction when an error occurs while processing the data modification statement. If SET XACT_ABORT is ON, SQL Server does not require nested transaction support from the OLE DB Provider.

This behavior is by design.

Steps to Reproduce Behavior

This sample uses a linked server, which uses OLE DB Provider for SQL Server, to explain the effect of XACT_ABORT.

1. Use OLE DB Provider for SQL Server to create a linked server named Sales that uses Microsoft OLE DB Provider for SQL Server.

   USE Master
   GO
   EXEC sp_addlinkedserver 
       'Sales',
       N'SQL Server'
   GO
   					

2. Open Query Analyzer, and run the following command.

   Begin Transaction
   Insert into Sales.Northwind.DBO.Customers(CustomerId,CompanyName) Values ('1000','Test')
   Commit Transaction
   					

   You receive the above-mentioned error message.

   Workaround

3. Run the following command to set XACT_ABORT to ON:

   Set XACT_ABORT ON
   					

4. Run the Insert statement again. Notice that the data is inserted into the table without an error.

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